Nvidia stock soared nearly 25% Thursday after the company announced standout earnings and predicted its sales would rise to $11 billion for the three months ending in July. Wall Street forecasters had estimated sales were going to be roughly $7.2 billion for that period.
Bank of America analysts, led by Vivek Arya, said the semiconductor giant’s guidance amounts to “the largest raise” they’ve ever seen from a company and is clearly “driven by the start of major data center investments in generative A.I. and large language models.” The analysts lauded Nvidia’s graphics processors that are used in data centers to help power artificial intelligence applications as a long-term cash cow for the company.
